Bulgaria: legal reform in enforcement

Todor LukovPrivate Enforcement Agent,

Vice Chairman of the Ethics CommitteeOf the Bulgarian Chamber of Private Enfoncement Agents

Topic - ThemeDeveloppment

Développement

Entry into the profession of private enforcement agents (PEA)

in Bulgaria

1st stage - April 3rd 2006 – the former state enforcement agents were licensed as private enforcement agents by the virtue of their office 2nd stage - October 14th, November 11th

2006 the new enforcement agents were licensed by the Justice Minister and sworn in after first passing a two-stage exam

Up to date - total 167 PEA

3rd stage – November 2013 – the new enforcement agents were licensed by the Justice Minister and sworn in after passing a 2-nd two-stage exam

4th stage (in progress) 2015-2016 – the new enforcement agents after passing a 3-rd two-stage exam

Territorial Jurisdiction of PEA28 provincial courts regions

Developpment

Développement

In the 2006 annual report the World Bankestimated the introduction of private judgment enforcement in Bulgaria as one out of ten most successful reforms on the

world basis

Professional competence of PEA in Bulgaria:• Collection of private debts• Collection of public debts• Enforcement of special pledges• Enforcement of adjudicated actions or conduct• Process service

“Judicial” EnforcementEnforcement of judgments (court decrees) CPC art. 404, 405, writ of execution (fieri facias)Enforcement of judicial orders (order for execution) - small claims (up to €12 550) & transfer of movables under pledge or lien CPC art. 410 - non-judicial instruments (acts) under art. 417 CPC: administrative writs (under strict legislative delegation) accounting excerpts denoting payables to state institutions; municipalities and banks notary deeds & notarized contractual obligations excerpts from the Special Pledges Registry certifying obligation to transfer property under lien mortgage & lien contracts bills of exchange; promissory notes and equal legal instruments - writs for public dues for municipal taxes and fees (under the Municipal Taxation Act)“Non-judicial” enforcement and other professional activities- Auctioning property under lien according to the Special Pledges Act;- Enforcement of titles under the Taxation and Social Security Procedural Act- Process service

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Case load / Economic effect

Cases opened yr./No

Cases closed yr./No

Amount collected in €

2010 – 140 000 2010 – 32 000 2010 – 290 mln. 2011 – 180 000 2011 – 40 000 2011 – 350 mln. 2012 – 220 000 2012 – 60 000

2012 – 500 mln.

2013 – 185 000 2013 – 66 000

2013 – 567 mln.

2014 – 173 000* 2014 – 72 000* 2014 over 500 mln.

Data estimate still in progress

Number of cases

№ cases opened

№ cases closed

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Amount collected (1BGN=0.51€)

Amount per title

Amount collected

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https://newregistry.bcpea.org/

Central Debtors’Registry (CDR)

The Central Debtor’s Register /CDR/ established by The Bulgarian Chamber of PEA is a centralized database of all PEA countrywide

Functionalities and features: -Check whether a potential counterpart (corporate entity) is involved in enforcement proceedings; - Check whether oneself is involved in proceedings a debtor; - Inquiries and related fee payments are performed electronically in the PEA offices;- Remote access of corporate clients to the database (in process of approval); - Over 1 million cases accessible;

Key projects of BCPEA

Key projects of BCPEAhttp://www.sales.bcpea.org/

Registry of Auctioned Property

Thank you - MerciTodor Lukov

Private Enforcement Agent, Vice Chairman of the Ethics Committee

Of the Bulgarian Chamber of Private Enforcement Agents